Introduction
Blockchain technology has transformed industries, especially
finance, by introducing a decentralized, transparent, and secure
way of managing data and transactions. While it began as the
foundation for cryptocurrencies like Bitcoin, its applications have
grown to include supply chain management, healthcare, voting
systems, and much more.
In blockchain, blocks serve as data containers, fundamental units of
the distributed ledger. Each block encapsulates transactions and
carries a unique identifier, known as a hash.
Each block’s hash contains data about its own and the preceding
block, forming an unalterable chain.
Unanimous agreement in a blockchain network is ensured by
consensus algorithms. They validate transactions and maintain
ledger integrity. Two prominent algorithms are Proof of Work
(PoW), where miners solve puzzles to add blocks, and Proof of
Stake (PoS), where participants validate transactions based on held
cryptocurrency tokens, aligning with network stability.
Key features and benefits of blockchain.
Decentralization: Information is stored across a network of
computers (nodes) rather than a single central server.
Transparency: Most blockchains are public, meaning all participants
have access to the same database.
Immutability: Once data is added to the blockchain, it cannot be
altered without network consensus.
Data security: Cryptography ensures robust protection against data
tampering.
Efficiency: Blockchain can enable faster and cheaper transactions
by removing the need for intermediaries.
Real-world applications of blockchain in IS.
Supply Chain Management
Tracks goods in real-time, ensuring transparency and reducing
fraud.
Example: Walmart uses blockchain to trace food origins.
Finance
Enables fast, secure international payments without intermediaries.
Example: Ripple (XRP) facilitates cross-border transactions.
Healthcare
Secures patient records and improves data sharing between
providers.
Example: MedRec manages electronic health records.
Voting Systems
Provides tamper-proof and transparent voting processes.
Example: Voatz offers a blockchain-based voting app.
Real Estate
Automates property transactions and ensures transparent
ownership records.
Example: Propy simplifies real estate deals using blockchain.
